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New future for Pie Face

Sarah Stowe

Troubled fast food business Pie Face has been given a fresh start and aims to focus on franchise profitability in a deal recently approved by creditors after going into voluntary administration late last year. The company aims to raise $10 million from investors.

Pie Face CEO Kevin Waite will continue to head up the business and in a statement he highlighted that “a heightened focus on franchisee profitability, seeking significant increases in wholesale production, and growing the brand’s international representation” would be the way forward for the pie business. 

Administrators Jirsch Sutherland in December had taken steps to turn around the pie chain’s fortunes and Franchised Food Company chief Stan Gordon had expressed interest in the business.

The new Pie Face chairman, former federal Liberal MP Andrew Thomson has indicated that investment will be sought from overseas licensing and private equity. In the short term funding is to come from TCA Global Fund Management.

According to Fairfax media, co-founder Wayne Homschek stays on as non-executive director. 

While the $10 million capital injection is expected to be enough to bring the business back into a leaner shape Thomson has indicated achieving profitability will take several months.

Fairfax reported that creditors have approved a deed of company arrangement and the secured creditor Macquarie has released its charges. However Pie Face still has debts of more than $20 million, owing money to employees and the Australian Taxation Office, which will be repaid over time.

There are reports that the corporate regulator has been sent a creditors’ report indicating Pie Face may have continued trading for a year while insolvent before seeking voluntary administration. 

 

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